Does my guarantor get charged automatically?

No, this will not happen as soon as you take out a guarantor loan. When a contract is co-signed between the main borrower and the nominated guarantor as an individual, the expectation is the former will be making repayments for the loan. The responsibility of the guarantor is to co-sign the contract and ensure the loan is paid back if it is required of them. The guarantor is only required to pay the guarantor loan back if the main applicant is unable to do so due to a change of circumstances, or if they simply do not pay. Why is […]

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Footballers, Dead People and Transexuals – What it was REALLY like to work for a loans company

Payday lenders get a very hard rap and are often criticised for preying on the vulnerable and charging high rates of interest. But what about the customers they work with? The public opinion is that anyone using a payday loan is frowned upon or vulnerable, but this is certainly not the case. I left University and was offered a job by one of the UK’s largest payday lenders and spent hours a day dealing with customers during the application process and the tough job of doing collections. Most customers were nurses, supermarket workers, hospitality and kitchen staff, but what about […]

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What are the responsibilities of the guarantor?

You are legally obliged to pay the loan back on behalf of the main borrower if they default on the guarantor loan. This is why you should always make sure you have fully understood the potential implications of becoming one when signing a loan agreement. However, you will not need to do anything if the main borrower pays back the loan. You will only need to pay money in the event that the main applicant falls into financial difficulty and can’t pay the loan back, or simply chooses not to. What does being a guarantor involve? The biggest potential responsibility […]

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Can I stop being a guarantor?

No, unless the loan is fully repaid by you or the main borrower this is not possible once the two week initial grace period has finished. After you have signed up to be a guarantor in a formal loan agreement, you have to keep to the terms of the contract. This is why you should make sure you have fully understood the potential financial complications and legal obligations you have when you sign up to become one. Why can I not stop being a guarantor? The guarantor lender has agreed to lend money largely on the basis of your financial […]

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What happens if you cannot repay your guarantor loan?

Tell your lender as soon as possible A new repayment plan may be offered Your guarantor will be contacted to pay the loan if it is not possible for you to do so. If you are the main borrower of a guarantor loan, you should inform your lender immediately if you cannot pay back the loan. If you cannot pay the loan back due to a change in financial circumstances, letting your guarantor lender know can relieve some pressure. This is because most lenders will call, email and send letters to you if you default on payments without letting them […]

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Who could be my guarantor?

Almost anyone can be your guarantor. In most cases people tend to choose one of the following to obtain their loan: Parents Spouse Sibling Grandparent Friend Colleague However, there are certain requirements that an individual needs to meet to become a guarantor. For example, most lenders will require the guarantor to be: Over 21 years old A good credit score Financial stability Homeowner (though not always a necessary requirement) Whether you are asking someone to be a guarantor or someone has approached you to be one, you should make sure it is someone you trust and you are aware of […]

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